Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

RBS to axe 7 directors in restructure

06 February 2009 / by Rachel Mason

Part-nationalised bank, Royal Bank of Scotland (RBS) has announced it is giving seven directors the chop as part of a Board restructure.

RBS announced that it has been considering its future shape in recent months and has decided that a restructured Board with a smaller number of directors will be “better able to engage effectively in the restructuring process for the RBS Group going forward."

These will be joined by three other non-executive directors to be appointed with the approval of UK Financial Investments Limited (UKFI), the Government organisation set up to manage Government stakes in Britain's state-backed banks.

"With several directors completing two or more terms or otherwise wishing to retire, now is the right time to reduce the size of the Board, whilst ensuring an appropriate level of continuity in its key committees," said Sir Hampton

"Everyone at RBS is fully focused on the task in hand; restoring the company to sustainable standalone strength and repaying the support of the UK taxpayer as quickly and effectively as is practicable," he said.

The move comes as the row over bank bonus payments continues to escalate. According to reports, staff are to receive six-figure bonus payments despite the fact RBS has had to be bailed out by the UK tax payer.

The Times reports that thousands of RBS workers could receive up to £100,000 for their work last year despite a £20billion cash injection from the Government, and that banks are rushing to square bonus payouts before a possible legal clampdown, like the one put in place by Presidnet Obama in the US this week.

Thousands of staff at the bank can expect rewards of up to £100,000 for their work last year, it has been claimed – the total outlay could run to hundreds of millions of pounds – and MPs have said the move will cause public outrage.

"What I would say is please be mindful about how this looks and what public opinion will be," Trade Secretary Lord Mandelson told RBS yesterday at the launch of the bank’s new £3billion small company lending facility.

He said he understood that the bank is working in a market where it has to recruit the best people and keep them in place but suggested that figures reported for potential bonus payments could be considered 'exorbitant'.